WASHINGTON, Monday, May 20, 2024- The United States could sharply raise tariffs on electric vehicles (EVs) imported from China, a move aimed at bolstering American manufacturing jobs and competitiveness, Bloomberg has reported. 1
A Voice of America report citing Reuters said that the Biden administration could quadruple the tariff rate on Chinese EVs to 102.5%, up from 25% previously.
The White House announced on Tuesday, May 14, that new tariffs will affect an estimated $18 billion worth of imports. 2
These measures include increasing tariffs on electric vehicles from 25% to 100% and on solar cells from 25% to 50%.
Additionally, tariffs on certain steel and aluminum products will more than triple, rising from 7.5% or less to 25%.
In response, China’s commerce ministry warned that these actions would “severely affect the atmosphere for bilateral cooperation” and criticized the politicization of economic issues.
Before the White House announcement, a spokesperson for China’s foreign ministry stated that China “will take all necessary measures to safeguard its legitimate rights and interests.”
Currently, the US already imposes high tariffs on Chinese-made electric vehicles, resulting in minimal sales in the US market. However, the US remains concerned as Chinese EV sales grow in Europe and other regions.
The new tariffs will see significant increases across various sectors. By 2025, tariffs on semiconductors will rise from 25% to 50%. In 2024, tariffs on certain steel and aluminum products will increase from 7.5% to 25%, electric vehicle tariffs will quadruple from 25% to 100%, and tariffs on lithium batteries and critical minerals will also jump from 7.5% to 25%. Additionally, solar cells will see an increase from 25% to 50%, and ship-to-shore cranes will face a new tariff of 25%, up from 0%. Lastly, in 2026, tariffs on rubber medical and surgical gloves will increase from 7.5% to 25%, according to the report filed by BBC.
The European Union and the UK are also considering measures to limit imports of Chinese-made electric cars, despite potential impacts on the adoption of such vehicles.
The US action reflects growing concerns about China’s aggressive competition in the EV market, which the administration argues is fueled by unfair subsidies.
- Trade Friction: https://www.bloomberg.com/news/articles/2024-05-12/biden-s-china-tariffs-salvo-to-range-from-doubling-to-quadruple[↩]
- Trade Friction: https://www.bbc.com/news/business-69004520[↩]
